You've seen certain credit type products that are going to…
![“You've seen certain credit type products that are going to be in nonbanks, like sophisticated CLO [collateralized loan obligation] tranches and stuff where the capital charge is so high that a bank simply will not own it. Someone will buy it, hedge it, trade it. But it won't typically be a bank.” quote by Jamie Dimon](https://sms4smile.com/q/img-quotes/f24/jamie-dimon-1320_certain_you-ve-seen-certain-credit-type-products_627328.png)
“You've seen certain credit type products that are going to be in nonbanks, like sophisticated CLO [collateralized loan obligation] tranches and stuff where the capital charge is so high that a bank simply will not own it. Someone will buy it, hedge it, trade it. But it won't typically be a bank.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Non‑bank entities will absorb high‑risk credit products banks avoid, creating a market for sophisticated tranches that are hedged and traded elsewhere.
In simple terms: Banks avoid risky assets; others take them.
Key Takeaway
Assess risk and diversify portfolios wisely.
Themes
finance
risk management
banking
Mood
analytical
cautious
Type
financial
strategic
When to use this quote
- investment strategy
- regulatory compliance
- risk assessment
Key Concepts
economics
securitization
Questions to Reflect On
- How should regulators adapt to non‑bank credit markets?
- What safeguards protect investors?
A Different Perspective
Regulation may lag behind innovation.